Palm Jumeirah apartment prices rise 9%; Springs up 8%

Average rental rates for Dubai apartments and villas up 1%: Asteco

Apartment sales prices in Palm Jumeirah rose nine per cent to Dh12,900 per square metre in the first quarter compared to the fourth quarter 2011, according to Asteco.

Springs remained the most popular among villa communities, witnessing a price surge of 8 per cent to Dh7,550 per square metre.

Prices of apartments in Greens went up by 3 per cent to Dh8,600 per square metre, while prices remained stable in Dubai International Financial Centre, Downtown Dubai, Dubai Marina, Jumeirah Beach Residence and Jumeirah Lakes Towers.

“Apartment sales prices remained relatively stable with some increases in Palm Jumeirah and the Greens, both popular areas among executives and families,” the real estate consultancy said in its new report.

The maximum decline in the apartment category was witnessed in Discovery Gardens. Prices dropped 11 per cent to Dh4,300 per square metre.

The report cited large amount of supply, low rental rates and high service charges reasons for the decline.

In the villa category, prices in Emirates Hills and Arabian Ranches jumped 7 per cent to Dh17,200 per square metre and Dh8,600 per square metre, respectively.

Meadows rose six per cent to Dh9,700 per square metre, while Jumeirah Village prices went up by five per cent to Dh5400 per square metre.

“Sales prices for villas fared positively, rising by four per cent on average compared to last quarter.

“The rise is predominantly driven by increased acquisitions from owner-occupiers in areas such as Arabian Ranches, Emirates Living and Jumeirah Village,” Asteco said.

Overall, rental rates for apartments and villas rose by one per cent on average.

Downtown Dubai rents jumped by 5 per cent, followed by Jumeirah Beach Residence (JBR) at 4 per cent and Jumeirah Lakes Towers (JLT) at 3 per cent.

A person can now rent a one-bed apartment in JLT for Dh45,000. One bed will cost Dh70,000 in JBR and Downtown.

Meadows and Green community rents climbed by 3 per cent, respectively. Arabian Ranches reported a 2 per cent jump, the report said.

The Dubai Land Department data shows that 448 deals were recorded in January and February 2012, surging 84 percent compared to the same period last year.

In February, Marwan bin Ghalitha, chief executive of Dubai’s Real Estate Regulatory Authority (Rera), said 16,000 new units will enter the market 2012 compared to 10,700 new units last year.

About 62 projects were completed last year and 220 projects are now under construction.